EURGBP on the Way to Test Crucial Support Again
01 March 2022
The EURGBP can’t seem to say good bye to the 0.83 support (orange). Why it is crucial? Well, just look at the chart. This is a weekly one, where you can see that 0.83 supported buyers since the end of 2016. Contact with that support resulted in a rise in 2016, 2017, 2019 and 2020.
2022 started with an instant test of that support. The end of January brought us a strong bullish reversal but the price came back to the 0.83 again and this time that may be actually it. Why do we think that? Well, look at the previous bounces. All of them were rather sharp and the contact with the orange area was not long. The price went there and bounced almost immediately.
That is not the case now. The gravity of this area looks pretty strong and doesn’t allow the Euro to take off. The old traders’ saying is that if something does not want to go up, it will most probably go down.
As for now, a further slide is just a suspicion. A sell signal will become a fact once the price breaks the 0.83 support. By the breakout I mean the price closing the weekly candle below that level. Chances for that are quite significant.